BNP AM

The sustainable investor for a changing world

Euro short duration bond strategy

Key features

A portfolio of high-quality, highly liquid short-duration bonds and money market instruments

Capital preservation and yield enhancement objectives

ESG integration

Investment philosophy 

Our investment philosophy is based on our core belief that no single approach works in every situation. We rely on our individual strategy experts, the wisdom of crowds and quantitative models.

We think a combination of fundamental and tactical approaches can deliver superior portfolio outcomes. Fundamental allocations can provide stability and liquidity, while tactical bets can help to boost yield.   

Investment process

Our Euro Short Duration strategy follows a disciplined four-step process:

  • Idea generation: inputs on core asset classes incorporating fundamentals, valuations and technicals
  • Investment committee: decision-making on strategic asset allocation views
  • Model portfolio: strategic investment committee views combined with tactical views
  • Portfolio implementation: a disciplined approach to client portfolio construction, with individual leeway versus the model portfolio

Team and resources

BNP Paribas Asset Management has a long history of managing short duration solutions, having launched our first strategy in 1974. 

Our Short Duration team is based in New York and Paris. Ken O’Donnell, who has more than 21 years of industry experience, leads the team. Fadi Berbari, Deputy Head of Short Duration Fixed Income, is responsible for euro short duration management.

The team benefits from access to our global trading and risk management platform, Sustainability Centre, Quantitative Research Group, and Macro Research team.

The value of investments and the income they generate may go down as well as up and it is possible that investors will not recover their initial investment. Past performance is not a guide to future performance. Investing in emerging markets, or specialised or restricted sectors, is likely to be subject to a higher-than-average volatility due to a high degree of concentration, to greater uncertainty because less information and/or less liquidity is available or due to greater sensitivity to changes in market conditions (social, political and economic conditions). Some emerging markets offer less security than the majority of international developed markets. For this reason, services for portfolio transactions, liquidation and conservation on behalf of funds invested in emerging markets may carry greater risk.